IMF to assess Ghana’s economy reform in April 2025

The International Monertary Fund (IMF) mission Chief Stéphane Roudet led a team to Ghana to discuss Ghana’s adherence to fiscal reforms that has been tied to the Extended Credit Facility (ECF) agreement amid persistent concerns economic headwinds.

Stéphane Roudet, speaking at the close of mission on February 14th confirmed that this is a “fruitful discussion” with Ghanaian officials, including President John Mahama, the Finance Minister Dr. Alex Amoah Forson and Bank of Ghana’s Acting Governor Daniel Asiamah. The conversation revolved around the recent macroeconomic trends and the early preparation for the 2025 national budget which will shape Ghana’s post crisis fiscal strategy.

While this meeting was happening, the International Monertary Fund (IMF) noted “progress” to reform benchmarks. Stéphane Roudet also clarified that a formal verdict on the performance of Ghana will come during the fourth review of the Extended Credit Facility (ECF) program which has been scheduled for April 2025. This assessment will determine whether Ghana qualifies for the further allocation from the 36 months rescue package approved in May 2023 to stabilize its debt-distressed economy.

The International Monertary Fund (IMF) team’s assessment arrives as our country Ghana navigates uneven progress in curbing the menace related to inflation, rebuilding foreign reserves and restructuring $5.4 billion of our debt under the G20 common framework. Although inflation has dipped from a peak of 54% in December 2022 to 23% as of January 2024 but the prices of food remains volatile while the cedi faced renewed pressure in recent weeks. The director of Local Think Tank IMANI Africa said “The government cannot afford to ease austerity measures prematurely”.

The International Monertary Fund (IMF) did not reveal the immediate adjustment to Ghana’s program target but rather emphasized on the need for “sustained commitment” to structural reforms. Ghana has received $1.2 billion so far on two occasions from the  International Monertary Fund (IMF) with another $360 million payout that’s pending the completion of the ongoing third review.

Over 70% of Ghana’s $58 billion public debt has been classified as high risk by the World Bank where the ability of Ghana to stick to IMF -mandated reforms could determine its access to an additional multilateral support and investor confidence.